AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 486
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....No.495 dated 22.09.1987?" 2. "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in upholding the order of Ld. CIT(A) in allowing the exemption u/s 54B of the I.T Act when the assessee failed to furnish evidence to show that the land was being used for agricultural purpose for two year immediately preceding the date on which transfer took place. 3. "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in upholding the order of Ld. CIT(A) that the agricultural income of previous year 2004-05 related to and was derived from that particular land for which exemption u/s 54B of the Act has been claimed by the assessee, when assessee has not been able to show any correlation between the said land and agricultural income. 4. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in upholding the order of Ld. CIT(A) in allowing and enhancing the exemption u/s 54B to the extent of Rs. 60,00,000/- where as the assessee's own claim of his exemption was only to the extent of Rs. 34,32,575/- as is evident from the return of income filed by him. (NOTE: The figure of Rs. 3....
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....the cost of the new asset shall be charged under Section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under Section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduced by the amount of the capital gain. (2) The amount of the capital gain which is not utilised by the assessee for the purchase of the new asset before the date of furnishing the return of income under Section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under subsection (1) of Section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by n....
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....r:- "2. Definitions. (14) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include- (iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than 10,000 according to the last preceding census of which the relevant figures have been published before the 1st day of the previous year; or (b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette; ........ ............. .......... ........... (42-A). "short-term capital asset" means a capital asset held by an assessee for not more than thirty-six months immediat....
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....nts or the HUF for agricultural purposes for a period of two years immediately preceding the date on which the transfer took place. There is nothing in this section that bifurcates the period of the use during these two years. There is nothing in this section that indicates that the land should have been used continuously only in the second of the two years and only for a few days in the first of the two years. Nor are we able to infer such a limitation from the plain language of this section on principle. 13. What constitutes use would, however, depend upon the facts of each case. We express no opinion in that regard. However, on facts, the respondent has established that he had been using the said land for a period of two years immediately preceding the date on which he transferred the same. 14. In the circumstances, questions No.1 and 5 are answered in favour of the respondent but subject to what we have said. Re: Question Nos.2 and 3 15. Question No.3 requires only a consideration of the facts. The Tribunal, after considering the facts, came to the conclusion that the land was being used for agricultural purposes. Firstly, we have already referred to the statement of the "....
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....6 ITR 335 (P&H) held: "10. In interpreting the words contained in a statute, the court has not only to look at the words but also to look at the context and the object of such words relating to such matter and interpret the meaning intended to be conveyed by the use of the words under the circumstances. The word "assessee" occurring in section 54B must be interpreted in such a manner as to accord with the context and subject of its usage. A reading of section 54B of the Act nowhere suggests that the Legislature intended to advance the benefit of the said section to an assessee who purchased the agricultural land even in the name of a third person. Wherever the Legislature intended it to be so, it had specifically provided under the provision. The term "assessee" is qualified by the expression "purchased any other land for being used for agricultural purposes", which necessarily means that the new asset which is purchased has to be in the name of the assessee himself for seeking exemption under section 54B of the Act. The purchase of agricultural land by the assessee in his son or grandson's name, therefore, cannot be held entitled to exemption under section 54B of the Act. 11. ....